Path to ProfitabilityA lot of tech companies talk about path to...

Path to Profitability

A lot of tech companies talk about path to profitability without quantifying it. BPG does. See table below from the Sept 2003 shareholders meeting presentation (http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/BPG/417601/402201.pdf)

The shaded area starts at breakeven cash flow based on the lowest growth scenario (so just over $10m ARR in Aug 24).

The presentation does not give the details of each scenario, but, from earlier presentations, I think the lowest scenario is based on each month adding 100 Tier 2 customers at $617 monthly ARR. (So $740k Gross adds and about $365 net, using their assumed 5% Churn on $7.5m ARR at Feb). Based on Feb actuals, they are pretty much on the low growth scenario, Feb ARR forecast around $7.5m where it ended up. However, run rate ARR growth accelerated a lot in Jan and Feb to about $750k net. That is why I get to ARR in March 25 of $17m in my forecasts vs around about $14m under their low growth scenario.